This is why I have always stood by the belief of never putting all my eggs in one basket. As I had raised the point with teddy before one over year back that it is always better to split up a large sum of money to buy several condos for easy rental than buying one expensive condo to rent out at a huge sum. I already saw CCR rentals declining long ago, which was also why I bought a small CCR two bedder in a modest location and not throw all my money in one expensive property in the prime district.
By Romesh Navaratnarajah:
Rents of newly completed high-end homes could decline further upon the completion of over 4,000 units in 2H2012.
Based on CBRE data, at least 20 developments with 4,285 units are set for completion in the second half of 2012. Of this figure, around half are located in the central business district (CBD) and in prime districts 9, 10 and 11. These include projects such as Marina Bay Suites, Boulevard Vue, Volari and Skyline 360.
According to the Urban Redevelopment Authority (URA), non-landed home rentals in the city centre slipped by 0.1 percent in Q2.
Moreover, rents of high-end non-landed homes analysed by Savills saw a four-month consecutive drop. Average monthly rents fell to S$5.03 psf per month, down three percent quarter-on-quarter or eight percent year-on-year.
Several experts noted that while the upcoming completion of units could put pressure on the rental market, newly completed projects will still find tenants as long as Singapore remains a cost-competitive option for companies. However, landlords should be prepared to accept lower rents.
Tan Kok Keong, Head of Research and Consultancy at OrangeTee, added that vacancy rates for homes within the city centre have been moving up, from 7.8 percent in Q1 to 8.2 percent in Q2.